The African Proptech sector has shown notable dynamics in its funding landscape over the past three years. In 2022, startups in this space raised $16.7 million across ten deals, marking a significant increase from previous years and highlighting growing investor interest. However, 2023 saw a 2.9% decline with $16.2 million raised across six deals.

A closer look at 2023 reveals that the first quarter was particularly robust, with $9.4 million raised, suggesting a strong start. In contrast, the overall funding environment for the first half of 2024 was more restrained, with only $2.3 million raised, compounded by several undisclosed funding rounds which add to the difficulty in gauging the total funding for the sector in 2024 so far.

While 2023 saw a strong start for African Proptech with over $9.4 million raised in Q1, the funding landscape in 2024 appears to be more cautious. Despite ongoing investment, the first half of 2024 saw over $2 million raised, significantly below the previous year’s first quarter. This, coupled with several undisclosed funding rounds, makes it difficult to gauge the total funding.

1. Kubik – $1.9 million

• Segment: Construction Sustainability 
• Country: Ethiopia
• Round: Seed extension 
• Founder: Kidus Asfaw
• Investors: African Renaissance Partners, Endgame Capital, and King Philanthropies, 

Kubik, founded in 2022 by Kidus Asfaw, is a construction sustainability company focused on transforming construction and building technology through a strong emphasis on efficiency and sustainability. The company, headquartered in Addis, pioneers sustainable construction practices by converting plastic waste into low-carbon buildings, thereby offering affordable housing solutions and effective waste management options for communities. This approach enables Kubik to provide clients with construction solutions that conserve resources and reduce environmental impact, all at accessible prices.

Funding Round

June 2023: Secured $3.34 million with investments from Plug & Play, BESTSELLER Foundation, GIIG Africa Fund, Satgana, Unruly Capital, Savannah Fund, African Renaissance Partners, KAZANA Fund, Princeton Alumni Angels, and Andav Capital.

Latest Funding: Raised $1.9 million in a seed extension round from African Renaissance Partners, Endgame Capital, and King Philanthropies.

2. Bosso – $400,000

• Segment: Construction e-commerce
• Country: Zambia
• Round:  Pre-Seed
• Founder:  Chisepo Chirwa, Mukopaje Singogo, Ibn Kafwanka, and Salwa Shamapande
• Investors: from Leonard by Vinci, Launch Africa Ventures, Renew Capital, Change-Com, and various angel investors,

Bosso, founded in 2022, is a Zambian e-commerce platform for building materials. Over the last year, the company has helped over 800 hardware stores stock inventory and over 400 homebuilders source their materials and have raised $400,000 in venture capital. To address the housing crisis in Zambia, the company moved construction material and delivery options online, making prices transparent, affordable, and easy for everyone.

Funding Round

February 2024: Bosso raised Undisclosed funding from Renew Capital

May 2024: Bosso, secured $400,000 in Pre-seed funding to address Africa’s housing deficit. The funding round included contributions from Leonard by Vinci, Launch Africa, Renew Capital, Change-Com, and various angel investors. The capital will be used to enhance Bosso’s AI-powered solutions, refine its product offerings, and expand services to improve efficiency in the construction sector. The company plans to open a seed round in August 2024 and source materials for over 5,000 homes by 2025.

3. Birdnest – Undisclosed 

• Segment: Rental Solutions 
• Country: Egypt
• Round: Pre-Series A
• Founder: Mostafa El-Nahawy and Ahmed Fadda
• Investors: Beltone Venture Capital, CI Venture Capital.

Birdnest, founded in 2020, by Mostafa El-Nahawy and Ahmed Fadda, is an Egyptian Proptech startup focused on high-value short-term rental properties. Headquartered in Egypt, Birdnest collaborates closely with real estate developers, institutional investors, and independent property owners to improve property management.

The startup aims to streamline and enhance the short-term rental experience through proprietary technologies and a dedicated regional quality team. With plans for expansion across key markets such as Egypt, Athens, Dubai, and Riyadh, Birdnest is strategically positioned to meet the growing demand for flexible and high-quality rental accommodations in urban centers.

Funding Round

May 2024: Birdnest raised an undisclosed funding amount led by Beltone Venture Capital, with CI Venture Capital.

4. RE-TEC Solutions – Undisclosed 

• Segment: Retail Property Management 
• Country: South Africa 
• Round: Pre-Seed
• Founder: Aileen Rodel
• Investor: REdimension Capital

RE-TEC Solution, founded in 2022 by Aileen Rodel, is a South African proptech startup, providing intelligent technologies to improve the management of retail property assets. The RE-TEC  platform empowers shopping centre owners and managers with integrated, digital tools that offer aggregated data and insights. This fosters streamlined processes and seamless connectivity between landlords, tenants, and service providers. By enhancing operational efficiency, tenant engagement, and rental revenue, while reducing administrative overheads, RE-TEC adds significant value to commercial properties. Established in 2022, the company leverages its founders’ expertise in retail development, management, marketing, and technology to deliver cutting-edge solutions for the real estate industry.

Funding Round

April 2024: RE-TEC Solutions secured a strategic investment from REdimension Capital. The strategic investment from REdimension, alongside access to its vast network, will empower RE-TEC to collaborate with leading real estate owners and managers, optimizing its product suite for maximum client valuation creation and accelerating expansion both locally and globally.

Outlook for Africa’s PropTech Funding in 2024

The African PropTech landscape in the first half of 2024 presents a mixed picture. While overall funding has dipped by 2.9% compared to the same period in 2023, there are reasons for optimism.

Continued Investor Interest:  Despite the 2.9% dip in overall funding, there is continued investor interest in the sector. Startups like Kubik and Bosso securing funding suggest that investors see potential in PropTech solutions that address Africa’s housing crisis and construction inefficiencies.

Diversification of PropTech Solutions: The emergence of startups like RE-TEC Solutions in the retail property management segment indicates a growing awareness of the need for PropTech solutions across different real estate verticals.

While the Africa’s PropTech funding for 2024 remains unclear due to undisclosed rounds, the continued flow of investment and the diversification of PropTech solutions are positive signs for the future of the sector in Africa.

Methodology: 

The African PropTech RoundUp relies on publicly disclosed information from sources like the company own public release, and primarily focuses on venture capital fundraising, excluding debt, grants, and non-equity financing.

The data were collected at the time of the funding announcement, acknowledging that numerous raises might occur without public disclosure of amounts, making tracking challenging.

PropTech RoundUp is your go-to source for industry trends, comprehensive analyses, in-depth insights, and fundraising activities in Africa’s rapidly evolving Proptech and Construction technology industry.

https://proptechroundup.substack.com/

Source: Bolade Maiga

PropTech RoundUp https://proptechroundup.substack.com/p/first-half-of-2024-africas-proptech